Indian auto company Tata Motors Limited noted that risks from protectionist trends are emerging around technology.

At the same time, the company found that tensions between the United States and China remain high on many fronts, including international trade, intellectual property and cybersecurity.

In addition, the internal economic disparities that arise from the pandemic recession can also generate new trade barriers, motivated by the need to protect domestic workers.

From their point of view, protectionist trends could extend to medical supplies and Active Pharmaceutical Ingredients related to the Covid-19 pandemic, affecting the global supply of vaccines and medicines.

In its fiscal year 2020-2021 (April 1 to March 31), Tata Motors Group sales were 837,783 vehicles, which was 12.9% less compared to fiscal year 2019-2020.

Within this volume, global sales of commercial vehicles were 267,513 units, while passenger vehicle sales totaled 570,270 vehicles.

Tata motors

It is estimated that global activity contracted 3.3% in 2020 due to the pandemic.

Given the unprecedented nature of Covid-19, the outlook for the global economy is uncertain and various growth outcomes are possible.

Global growth is estimated at 6.0% in 2021 and is forecast to stabilize at 4.4% in fiscal 2022.

Among advanced economies, the United States is expected to exceed its pre-Covid-19 GDP level this year, while many other countries will return to their pre-Covid-19 levels through 2022.

Similarly, among emerging market and developing economies, China had already returned to pre-Covid-19 GDP in 2020, while many others are not expected to do so until well into 2023.

Most commodity prices rebounded in the second half of the 2020-21 fiscal year.

However, the rebound in oil prices lagged behind the general recovery in commodity prices due to the prolonged impact of the pandemic on global oil demand.

Oil demand fell 9% last year, the steepest drop in a year due to pandemic control measures and the associated drop in global demand, which was offset in part by historically significant production cuts between the OPEC +.

Impacts

Tata Motors’ domestic commercial vehicle industry volume experienced a 21.7% decline in fiscal 2020-21, after contracting 30% in fiscal 2019-20.

The successive decline in fiscal year 2019-20 and fiscal year 2020-21 is attributed to a number of challenges that included reduced overall economic growth, increased axle load standards, transition from BS4 to BS6, and the blockade induced by the pandemic.

After bottoming out in the first half of fiscal 2020-21, the commercial vehicle industry showed a good rebound in the third quarter and fourth quarter of fiscal 2020-21, led by M & HCV and ILCV with the economy recovering. gradually.

Amid industry-wide semiconductor shortages and rising steel prices in the second half of fiscal 2020-21, the company’s commercial vehicle business managed to increase volumes and improve market share in the second half. mid-fiscal year 2020-21.

Tata Motors Group is one of the world’s leading automobile manufacturers with a diversified portfolio of commercial, passenger and luxury vehicles.

As part of the multinational conglomerate Tata Group, the company has operations in India, the United Kingdom, South Korea, South Africa, China, Brazil, Austria and Slovakia through a strong global network of subsidiaries, associates and joint ventures, including Jaguar Land. Rover in the UK and Tata Daewoo in South Korea.